Farmers ask for help from retailers as lamb prices crisis continues

Sheep farmers in Wales gearing up for the crucial lambing season have urged retailers to support their industry as they battle against cheap imports and rising cost to the consumer of meat produced in Britain.

Sheep farmers in Wales gearing up for the crucial lambing season have urged retailers to support their industry as they battle against cheap imports and rising cost to the consumer of meat produced in Britain.

Wales’ famous lamb – prized in restaurants around the world – is coming under increasing pressure as the price farmers sell at is making it uneconomic for some to remain in the business.

And despite the price drop, shoppers are still paying anything between £8 and £14 per kilo for the meat.

Market prices for Welsh lamb have dropped by around £1 per kilo from last year, taking the average cost of lamb to just £3.20 per kilo.

The collapse in wholesale prices has been blamed on the financial crisis in the eurozone, the rising costs of feed and wet weather throughout the second half of 2012 which caused a delay in getting lambs fit for market.

NFU Cymru Less Favoured Areas (LFA) Board Chairman, John Owen, believes the combination of poor weather, input costs and the Eurozone crisis make this the worst possible winter for farmers to face without dedicated LFA support.

He said: “In the last few days we have heard of lambs being sold for as little as a couple of pounds, most report a decrease of £20-£30 compared to a year ago.

“Wales has a Rural Development Plan approved by the Commission which includes a mechanism to deliver support to the Less Favoured Areas of Wales and I would urge the Deputy Minister to use this mechanism that he has available to help farmers through this difficult period.”

Farmer Daphne Tilley, 72, who runs Elwy Valley Welsh Lamb Farm in Denbighshire, said: “I have had to lower my prices very substantially otherwise no one would buy the lamb, especially the expensive cuts. The horrendous weather has meant the lambs haven’t fattened like they usually do because they have used all their energy to survive, and so they have been very slow to reach their prime.

“Also their food is expensive and the price is going up, while supermarkets are importing meat from outside the UK because it is cheaper and they do not want to pay the extra to buy from here.

“I am very worried because it seems our expenses are going up while our income is going down.”

Welsh butcher Vic Hopkins and Son, in Barry in the Vale of Glamrogan have also had to slash prices to sell their Welsh lamb.

Anthony Hopkins, managing director of Vic Hopkins and Son, said: “Just last week had to do a promotional sale on all our lamb. We lowered our lamb prices by 10% across the board. People are trying to save money by buying cheaper meat like pork, beef or poultry.”

NFU Cymru President Ed Bailey has called on the support of processors, retailers and Welsh Government to help Welsh lamb producers cope with the recent slump in prices.

The collapse in the market price for Welsh Lamb was top of the agenda when NFU Cymru members met for their Winter Welsh Council meeting in Llandrindod Wells last month.

Mr Bailey said: “We have a world-renowned product but farmers are having to sell at rock bottom prices. Rising input costs alongside the continuing poor weather only compound the position that we now find ourselves in.

“I would urge our processors and retailers to recognise the very real issues sheep farmers face this winter and show their support to Welsh farmers through committing to a strong marketing and promotion campaign for domestically produced lamb and ensuring primary producers receive a fair price for their produce. There can be no reason why retail shelves need to be filled with imported lamb when there remains a glut of lamb left to be marketed and sold in the UK.”

British lamb farmers have been able to command healthy prices for their meat in the past, meaning supermarkets to source product from elsewhere. This has led to an influx of lamb being imported from New Zealand and Australian.

The NFU recently criticised Tesco and Asda for selling “substantial quantities of New Zealand and Australia lamb” instead of British lamb.

But a Tesco spokesman yesterday defended the company’s policy on which lamb it stocks.

He said: “We are committed to offering our customers the best local and regional produce Wales has to offer. Our finest range includes lambs from Wales from July to October, when Welsh lamb is in season.”